isaac cosells merchandise on credit to sonar co in the amoun

isaac co.sells merchandise on credit to sonar co. in the amount of9,600 the invoice is dated on april 15 with terms of 1/15 ,net 45 if sonar co chooses not to take the discount by when should the payment be made

Solution

Given credit term is - 1/15 net 45 which implies that the buyer (Sonar Co.) should make the payment within 15 days of purchase to avail a 1% discount. However, if the company doesn\'t want to avail the discount, then the entire invoice amount should be paid within 45 days of purchase

Hence, Sonar Co should make the payment within 45 days (by May 30) for the invoice as it choses not to take the discount